Comments on: Boston to New York for $7? Can someone explain why? http://simpliflying.com/2008/boston-to-new-york-for-7-can-someone-explain-why/ Helping airlines & airports engage travelers, profitably Sun, 22 Jan 2012 21:33:57 +0000 hourly 1 By: Huy Mooch http://simpliflying.com/2008/boston-to-new-york-for-7-can-someone-explain-why/comment-page-1/#comment-4004 Huy Mooch Sun, 30 May 2010 01:24:15 +0000 http://simpliflying.com/?p=568#comment-4004 Adding the BOS -> JFK flight onto the itenary also makes the HKG->SIN flight a little later. Being later also causes flights to cost less. Adding the BOS -> JFK flight onto the itenary also makes the HKG->SIN flight a little later. Being later also causes flights to cost less.

]]> By: Peter http://simpliflying.com/2008/boston-to-new-york-for-7-can-someone-explain-why/comment-page-1/#comment-861 Peter Wed, 14 Jan 2009 08:53:35 +0000 http://simpliflying.com/?p=568#comment-861 This is possible due to code-sharing agreements between American Airlines and Cathay Pacific. American will offer discounted fares to those who are connecting on Cathay Pacific Flight and vice versa (AA also do the same for BA and other code sharing partners). Of course, the actual fares received by AA is not 7 dollars, but it is usually substantially lower than the normal retail price of the ticket (usually at the discounted inter-airline rate) and CX will not received their normally price for their JFK to HK flight either, but there is certain advantages even though the yield might seems to be lower. By having AA and CX offer such discounted tickets from Boston to HK via JFK, it helps fill up AA Boston to JFK flight and also helps fill up Cathay JFK to HK flight, especially during quiet period of the year. Without this kind of code-sharing discount, neither CX nor AA can maintain the frequency of service and their profitability of their routes. In extreme cases during low seasons, this kind of code-share agreements helps airline maintain certain load factor and ensure that they at least break-even on a lower yield then losing money due to lack of demands. If you look carefully at your booking, you will notice that your requested flight is over New Years Eves and most airlines will have a reduced load factor due to the holidays. Hence, they will offer this kind of fares just to fill up the seats. If you look again for other times (I just did a search, during chinese new year period [departure 23rd Jan, return 5th Feb]), you will notice that the price for the same sector will have a USD200 price difference. Hope this will give you a satisfactory answer. This is possible due to code-sharing agreements between American Airlines and Cathay Pacific. American will offer discounted fares to those who are connecting on Cathay Pacific Flight and vice versa (AA also do the same for BA and other code sharing partners). Of course, the actual fares received by AA is not 7 dollars, but it is usually substantially lower than the normal retail price of the ticket (usually at the discounted inter-airline rate) and CX will not received their normally price for their JFK to HK flight either, but there is certain advantages even though the yield might seems to be lower.

By having AA and CX offer such discounted tickets from Boston to HK via JFK, it helps fill up AA Boston to JFK flight and also helps fill up Cathay JFK to HK flight, especially during quiet period of the year. Without this kind of code-sharing discount, neither CX nor AA can maintain the frequency of service and their profitability of their routes. In extreme cases during low seasons, this kind of code-share agreements helps airline maintain certain load factor and ensure that they at least break-even on a lower yield then losing money due to lack of demands. If you look carefully at your booking, you will notice that your requested flight is over New Years Eves and most airlines will have a reduced load factor due to the holidays. Hence, they will offer this kind of fares just to fill up the seats. If you look again for other times (I just did a search, during chinese new year period [departure 23rd Jan, return 5th Feb]), you will notice that the price for the same sector will have a USD200 price difference. Hope this will give you a satisfactory answer.

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